Elma Holdings Pcl reported a massive increase in first half profit increase on the back of higher income, increased revaluation gains and a CYP 3.35 mln reduction in provisions against a case with Laiki Bank.
Income from dividend, rent, financial services and manufacturing activities surged to CYP 720k from CYP 435k a year in the first half of 2006. With administrative and other expenses under check at CYP 387k, the operating profit surged to CYP 332k in the first half of 2006 from CYP 90k a year ago.
After the reduction of net finance costs, the net operating loss amounted to CYP 143k from CYP 331k loss a year ago.
The rally in equity prices helped Elma book a realized gain of CYP 718k vs. CYP 388k a year ago while equity valuation gains reached CYP 5.8 mln from CYP 1.99 mln a year ago in the same period.
Elma, which is in court against the Laiki Bank Group over a dispute on options and loans undertaken during the Kyknos Investments hostile bid, which initially was backed by Laiki against SFS decided to bring back a CYP 3.35 mln reduction in provision on the Laiki Bank case after overdue balances between CPB and Group subsidiaries Elma Financial Services and Elma Properties were settled.
Overall, net profit attributed to shareholders tripled to CYP 6.578.014 for the first half of 2006 from CYP 2.085.929 a year ago in the same period and CYP 2.8 mln for the whole of 2005. Earnings per share jumped to 3 cent from 0.95 a year ago and 1.29 cent for 2005.
Shareholders funds’ doubled to CYP 14.96 mln from CYP 7.47 mln attributable to shareholders. The company revealed in its books that the provision for a claim with Laiki on its liabilities amounted to CYP 5 mln, down from CYP 9 mln end of 2005, but at the same time it said that it has claims against Laiki amounting to CYP 12.5 mln regarding the Kyknos takeover attempt and CYP 534k regarding another court case, alleging that Laiki misinformed the public when it floated Laiki Investments.
Laiki Bank on the other hand has claimed CYP 3.17 mln from Elma on a loan granted to finance the Kyknos hostile bid and CYP 6,2 mln for overdue balances.
